Rising tensions between Israel and Iran have dominated headlines and generated market uncertainty worldwide. Following Israeli operations targeting Iranian nuclear infrastructure and military installations that commenced on June 13, swift retaliation followed. Although the situation remains fluid and subject to rapid change, emerging reports suggest Iran may be willing to cease hostilities and return to nuclear negotiations. This development occurs alongside the ongoing Israel-Gaza conflict and various regional disputes elsewhere globally. While humanitarian impacts remain paramount, investors must comprehend how such developments affect financial markets. A primary investor concern centers on whether these events might spiral into comprehensive global warfare. Though always possible, recent history suggests otherwise. Even major conflicts, including Russia's Ukraine invasion and Hamas's Israel attack, stayed localized, producing only temporary stock market turbulence. This observation doesn't minimize these conflicts' gravity but emphasizes that portfolio overreactions can prove counterproductive. During such periods, maintaining perspective and concentrating on historical lessons and long-term market patterns becomes crucial. What should investors prioritize to remain disciplined in these market conditions? Regional tensions have intensified significantly Recent developments represent heightened confrontation between Israel and Iran. Israeli operations struck Iranian nuclear installations and military leadership, with reports confirming damage to uranium processing facilities. Iran responded with missile and drone assaults, some penetrating Israeli airspace. The confrontation has also harmed vital infrastructure across both nations, including natural gas installations and petroleum refineries. At the risk of oversimplification, historians typically regard each event as distinctive, possessing unique narratives, origins, and outcomes. Economists, conversely, seek patterns and commonalities between events to form broader conclusions. As investors, both viewpoints prove valuable for understanding which lessons apply. A familiar adage states that history doesn't repeat itself, but it frequently rhymes. The included chart offers historical context regarding geopolitical events spanning the last 25 years. This encompasses Middle Eastern conflicts affecting oil markets, such as Iran's 2019 drone attacks on Saudi Arabia. These episodes demonstrate that while short-term market fluctuations occur, markets generally recover from geopolitical disruptions, often within weeks or months following initial events. More significant during these periods were fundamental business cycle developments. Energy markets have experienced significant fluctuations In immediate terms, oil markets can serve as conduits through which regional conflicts influence the broader world. Initial market responses to recent conflicts centered on energy sectors, with Brent crude futures climbing above $74 per barrel. Energy prices remain unstable but retreated toward $70 per barrel amid potential de-escalation. Oil markets influence the global economy as energy remains a substantial input across all goods and services. Elevated oil costs translate to higher gasoline and transportation expenses, increasing prices for consumers and businesses alike. This effect amplifies through potential closure of vital shipping corridors, including the Persian Gulf's Strait of Hormuz. This critical passage handles approximately one-third of global oil transit. Nevertheless, maintaining perspective on current energy price levels remains important. While recent fluctuations are noteworthy, prices stay well beneath 2022 peaks during early Russia-Ukraine conflict stages, when oil surpassed $120 per barrel. Present levels around $70 fall within ranges experienced over recent years. This year alone, oil has oscillated between $60 and $82 per barrel. Additionally, the U.S. has achieved greater energy independence over two decades. American oil output now surpasses 13.5 million barrels daily. Some may be surprised that the U.S. leads global production in both oil and natural gas. While America still requires foreign oil and remains sensitive to global pricing, substantial domestic supply helps shield the U.S. economy and financial markets. Portfolio effects of conflicts depend on economic cycles For investors concerned about escalating global conflicts, broader perspective proves helpful. From World War II through the Iraq War, markets may have responded to these conflicts short-term, but long-term performance was driven by investment fundamentals. For instance, World War II stimulated industrial output following the Great Depression and created substantial labor market shifts as women joined the workforce. These elements helped drive economic growth throughout the remaining century. Similarly, the Gulf War influenced oil markets but coincided with the 1990s Information Technology boom. Conversely, the post-Vietnam War decade aligned with elevated oil costs and stagflation, producing weak market returns. Again, this doesn't minimize these wars' humanitarian and social impacts. For current circumstances, much depends on whether conflict expands or begins subsiding. Major power involvement and threats to essential supply routes add complexity, yet history indicates even substantial regional conflicts typically have limited long-term effects on global financial markets. Although Middle Eastern tensions have generated short-term market instability, investors should maintain perspective and resist overreacting to news cycles. A portfolio structured around long-term financial objectives remains the optimal strategy for navigating geopolitical uncertainty periods. If you have any questions or want to talk through how this might apply to your financial situation, don’t hesitate to reach out to your financial advisor . They’re here to help you navigate the details and make informed decisions with confidence. As always, we at Whitaker-Myers Wealth Managers are grateful for the opportunity to walk alongside you on your financial journey.

For many investors, the accumulation phase of retirement planning is relatively straightforward: contribute consistently, diversify wisely, and let compound interest do the heavy lifting. The goal is simple — build enough assets to one day generate income that matches your lifestyle needs. But what often gets overlooked is what happens after  you’ve successfully grown those assets, particularly when large balances are held in pre-tax retirement accounts.   At first glance, a sizable IRA or 401(k) balance may seem like a win — and it is — but once you reach age 73, those funds come with strings attached. Required Minimum Distributions (RMDs) force you to withdraw a certain amount each year, regardless of whether you need the income. And while these distributions may feel like a natural part of retirement, they can have unintended consequences — namely, triggering higher taxes and Medicare premiums due to something called IRMAA (Income-Related Monthly Adjustment Amount).   This article will walk you through the lesser-known pitfalls of RMDs, how IRMAA works, and, most importantly, the strategies available to help reduce or avoid these surcharges altogether.   What Is IRMAA? IRMAA is an additional surcharge added to Medicare Part B and Part D premiums. These surcharges are triggered if your Modified Adjusted Gross Income (MAGI ) exceeds certain thresholds. What makes it particularly painful is that IRMAA brackets are “all-or-nothing” — meaning if your income is just $1 over the limit, you’re bumped into the next premium tier, paying the full increase like someone at the top of that range.   To make things even trickier, there’s a two-year lookback: your 2025 Medicare premiums are based on your 2023 income.   Case Study: Mr. Whitaker  is 72 and retired. He lives modestly, but in 2023, he took an $80,000 RMD from his IRA, which pushed his MAGI up to $125,000. In 2025, he receives a notice from Social Security: His Medicare Part B premium jumps to $349.40/month, and his Part D IRMAA surcharge is $33.30, totaling over $100/month more, or $1,400 per year, in surcharges. He had no idea he’d crossed an income threshold — and he didn’t feel the effects until two years later.   Strategies to Help Avoid IRMAA Surprises Roth Conversions Roth conversions enable investors to transfer pre-tax dollars into a Roth IRA during years when their income is lower — ideally before required minimum distributions (RMDs) begin. This means you: Pay taxes now, at potentially lower rates Reduce your future RMDs Shrink your tax-deferred balance, which helps control future MAGI Think of it as proactively paying taxes on your terms, instead of waiting for the IRS to tell you how much to withdraw, possibly when you’re in a higher tax bracket.   Qualified Charitable Distributions (QCDs) For retirees who don’t need their RMDs to support their lifestyle, QCDs are a powerful tool. Instead of taking a taxable RMD, you can donate up to $100,000 per year directly from your IRA to a qualified 501(c)(3) charity.   This satisfies your RMD without increasing your taxable income, helping you avoid IRMAA surcharges while supporting causes you care about.   Many retirees can live comfortably on: Low lifestyle expenses Other income sources (Social Security, pensions, investment income)   This means their pre-tax accounts continue to grow, eventually leading to larger Required Minimum Distributions (RMDs) and higher tax implications. A QCD lets you break your RMD into smaller gifts across multiple charities. As long as the distribution goes directly from the IRA to the charity, it won’t affect your MAGI or Medicare premiums.   Delaying Social Security Social Security counts as taxable income (up to 85%) and contributes to your Modified Adjusted Gross Income (MAGI), which influences your Medicare Part B and Part D premiums. By delaying social security, you can strategically create a “low-income window,” which is ideal for the following strategies: Roth Conversion Capital gains harvesting Strategic drawdown from taxable investments These strategies can be complex in application, and the best approach is highly individual, often changing year to year based on your income sources, spending needs, and tax situation. If you're unsure how this might apply to your retirement plan or would like to explore ways to minimize IRMAA exposure, schedule a meeting with one of our financial advisors  to discuss strategies tailored to your specific needs, financial situation, and goals. We’re happy to help you plan and keep more of your money working for you, not against you, with Medicare surcharges.

Two weeks ago, Summit Puri and I had the opportunity to spend several days at PIMCO’s headquarters in Newport Beach, California. As the largest fixed-income manager in the United States, PIMCO is a crucial partner to Whitaker-Myers Wealth Managers, especially in our fixed-income analysis and investment strategies. During my time there, Summit and I gained invaluable insights into U.S. economic policies, global trade dynamics, inflation trends, labor markets, fiscal deficits, and their implications for investment strategies. Below is a summary of the key takeaways from my discussions with PIMCO’s esteemed experts. Economic Policies and Global Trade: Insights from Tiffany Wilding Tiffany Wilding , an economist at PIMCO, provided a comprehensive overview of the current economic landscape. She noted that the pandemic’s economic impact is largely behind us, with inflation in developed markets nearing target levels. However, recent U.S. policy shifts are more aggressive than anticipated, particularly in trade, fiscal management, and labor policies. Trade Deficit and Global Competitiveness Wilding highlighted how countries with trade surpluses, such as China, Germany, and Korea, contribute to U.S. trade imbalances. Policies aimed at rebalancing trade should boost domestic consumption but may face resistance from surplus economies that maintain high savings rates. U.S. Labor Market and Policy Solutions A major topic was the decline of the U.S. labor share post-China’s WTO entry. The resulting wealth transfer toward capital holders at the expense of the middle class has led to structural challenges. Potential solutions include reducing fiscal deficits, promoting structural reforms in other countries, and adjusting the U.S. dollar’s valuation. However, each solution faces political and economic constraints. Fiscal Deficits and Social Programs With the U.S. grappling with high fiscal deficits, reforms in Social Security and Medicare remain politically sensitive. Medicaid adjustments also face strong opposition, making deficit reduction a complex issue. As we know, this is roughly half of the US budget, so something must be done. Tariffs, NAFTA, and Economic Disruptions The discussion extended to the impact of tariffs on inflation and economic growth, particularly in relation to supply chain disruptions between the U.S., Mexico, and Canada under NAFTA. Investment Implications from Mark Kiesel Mark Kiesel , PIMCO’s CIO of Global Credit, presented an out-of-consensus perspective on economic growth, predicting a sharper slowdown than commonly expected. His insights, drawn from direct CEO conversations, indicate that many business leaders are privately concerned about economic headwinds. We'll see if this plays out, but it was probably an easier (less out-of-consensus) argument to make as the market hit a 10% correction right around the time of this meeting. Bond Market Opportunities Kiesel emphasized that bonds present one of the best investment opportunities in years. Reflecting on past forecasts, he recalled correctly predicting the 2006 housing market collapse. Today, he sees parallels in underappreciated risks and mispriced opportunities in fixed income. Commodities and Inflation Trends: Insights from Andrew DeWitt Andrew Dewitt, Portfolio Manager at PIMCO, delved into the role of commodities in the inflation landscape. While commodity inflation has softened, especially in energy, potential geopolitical shocks could disrupt this trend. Tariffs, Trade Wars, and Commodity Markets Trade tensions with Canada and Mexico have contributed to inefficiencies in the U.S. energy market, particularly in gasoline production. Potential policy shifts regarding Venezuela may alleviate some of these issues. Investment Strategies in Commodities Dewitt highlighted that commodities act as strong inflation hedges, with a 1% surprise in inflation historically leading to an average 7% gain in commodity prices. He introduced various investment vehicles, including the Commodity Real Return Fund and newly launched ETFs. AI’s Impact on Energy Demand The discussion also covered how AI-driven power consumption will increase demand for natural gas, reinforcing its importance in long-term energy strategies. Fixed Income Strategies: Insights from Dan Ivascyn Dan Ivascyn , CIO of PIMCO and leader of the renowned PIMCO Income Fund, shared his approach to navigating today’s fixed-income markets. The PIMCO Income Fund has outperformed 99% of its peers over 15 years, demonstrating its strategic prowess. Fixed Income Outlook and Interest Rate Strategies Dan emphasized the predictability of fixed-income yields over a five-year horizon, citing a strong correlation between starting yields and subsequent returns. Current bond yields present attractive opportunities, often exceeding the 2% inflation target, with some reaching 6-7%. Corporate Credit and Risk Management While corporate credit markets remain tight, PIMCO’s strategy focuses on high-quality investments to preserve yield and mitigate downside risks. Diversification into global bond markets, particularly in Australia, the UK, Canada, and select emerging markets, was recommended and is being executed by the PIMCO Income Team. Private Credit and Interval Funds Ivanscyn also discussed the growing role of private credit markets and interval funds in today’s investment landscape. While private credit provides additional yield, investors must be aware of associated risks, particularly in distressed sectors. Final Thoughts Summit & I's visit to PIMCO reinforced the importance of data-driven, forward-thinking investment strategies. The insights shared by PIMCO’s top experts provided a nuanced understanding of today’s economic complexities and investment opportunities. As Whitaker-Myers Wealth Managers continues to partner with PIMCO, these perspectives will play a crucial role in shaping our fixed-income strategies and broader investment approach for our clients. As always, we remain committed to helping our clients navigate market uncertainty with well-researched, high-quality investment strategies.

This week, my Co-Chief Investment Officer, Summit Puri , Tim Hilterman, CFP® , and I were able to spend about an hour with Meb Faber , who was in town for the Financial Planning Association All-Ohio Symposium , talking markets, US vs. International valuations, the incompetence of CALPERS, and 351 ETF conversions. Admittedly, Section 351 ETF conversions are not very well known. At the above-mentioned FPA All-Ohio Symposium, only about 5% of Financial Advisors admitted to having knowledge of this unique part of the tax code. Thankfully, I have had brief exposure to the strategy recently, while working through the material for my newest designation, I'm working on, the Tax Planning Certified Professional (TCPC™️) through the American College of Financial Services . Fortunately, some people amass great wealth in a single stock. With concentration can come quick and large gains. However, the same can be said in reverse. With great concentration, great wealth can be lost. Take a look at the chart below. As of the beginning of May, the S&P 500 is down 4.42% this year; however, you can see there are many employees and investors of Kohl's, Abercrombie & Fitch, Neogen Corp, & Nabors Industries that are having a much worse year than you, as it relates to their wealth. For many of those stocks, a nearly 50% loss. Ouch! The reality is that it could be any company, in any given year. Perhaps these names will rebound, but to the extent they don't, the investors and owners of these stocks could really have benefited from the section 351 ETF conversion. At Whitaker-Myers Wealth Managers, we understand the challenges faced by investors holding significant positions in a single stock—often due to stock options, RSUs, ESPPs, or ESOPs. While such holdings can be lucrative, they also expose investors to substantial risk. As Dave Ramsey advises, limiting any single stock to no more than 10% of your net worth is prudent to maintain financial stability. The Dilemma of Concentrated Stock Holdings Holding a large position in one stock can be risky. Market volatility, company-specific issues, or industry downturns can significantly impact your wealth. Diversifying your portfolio is essential to mitigate these risks and ensure long-term financial health. Introducing Section 351 ETF Conversions Section 351 of the Internal Revenue Code offers a solution: it allows investors to transfer appreciated securities into a newly formed corporation (such as an ETF) in exchange for shares, without triggering immediate capital gains taxes . This strategy enables you to diversify your holdings while deferring tax liabilities. For example, let's say you hold $500,000 of Apple Stock. You would like to diversify this holding into a broader investment structure like an ETF can provide. You could make a contribution to the Section 351 ETF being created. You'll get shares back of the ETF, which had many contributions from many different investors, like yourself with different concentrated stock holdings. After seven days, the investments in the ETF are sold and reinvested in a diversified manner, but because this was done in an ETF wrapper, you realize no tax gain. When you decide to sell the investment (which would most likely be in small pieces over time), at that point, you'll realize the tax gain. Therefore, it's important to remember that you are not eliminating your tax liability because of the exchange, but eliminating your single stock risk. To quote Ben Franklin, "Nothing is certain except death and taxes." Benefits of Section 351 ETF Conversions Tax Deferral : By transferring your concentrated stock into an ETF structure, you can defer capital gains taxes, allowing your investments to grow uninterrupted. Diversification : The ETF structure provides exposure to a broad range of assets, reducing the risk associated with holding a single stock. Liquidity and Flexibility : ETFs are traded on major exchanges, offering liquidity and the ability to adjust your investment strategy as needed. Eligibility Considerations To qualify for a Section 351 exchange, your portfolio must meet specific diversification criteria: No single security can constitute more than 25% of the total value. The combined value of the top five securities must not exceed 50% of the total portfolio . If your holdings are too concentrated, alternative strategies like exchange funds might be more appropriate. Aligning with Dave Ramsey's Philosophy Dave Ramsey emphasizes the importance of diversification and cautions against overexposure to single stocks. He recommends investing in a mix of growth, growth and income, aggressive growth, and international mutual funds to achieve a balanced portfolio . Section 351 ETF conversions align with this philosophy by facilitating diversification and promoting long-term financial stability. Taking the Next Step If you're concerned about the risks associated with a concentrated stock position, consider exploring a Section 351 ETF conversion. This strategy can help you diversify your portfolio, defer taxes, and align with sound investment principles. Contact our Chief Financial Planner, Tim Hilterman, CFP® by clicking this link . At Whitaker-Myers Wealth Managers, we're here to guide you through this process and tailor a strategy that fits your financial goals. Contact us today to learn more about how we can help you achieve a more balanced and secure financial future.

When considering our financial plans, we often think about investments, retirement accounts, insurance, college savings, near- and long-term goals, and much more. However, the part that is often left to the wayside is the estate plan. According to this CNBC article , nearly two out of every three Americans have not completed an estate plan. When it comes to estate planning, many individuals are familiar with the idea of a will , but far fewer understand the critical role a revocable living trust  can play in streamlining the transfer of assets and avoiding probate. At Whitaker-Myers Wealth Managers, we often guide our clients through the estate planning process to ensure their legacy is preserved and passed on efficiently. A revocable living trust is a powerful tool and one that more than likely benefits many families—but it’s not a complete solution. Here’s what it does well—and where it falls short. Estate Planning is a part of a well-rounded financial plan What a Revocable Living Trust Does  Offer A revocable living trust  is a legal entity you create to hold title to your assets during your lifetime. You maintain control over the trust and can change or dissolve it at any time while you're alive. Here are the key benefits: Avoids Probate: One of the biggest advantages is that assets held in a revocable trust bypass probate court. This means your heirs can receive their inheritance faster, more privately, and without the added expense and delay of probate proceedings. Continuity in the Event of Incapacity: Should you become incapacitated, your successor trustee (whom you choose) can manage the trust assets without the need for a court-appointed guardian or conservator. This provides peace of mind and continuity in managing your affairs. Organizes Your Estate: A revocable trust can consolidate the ownership of your assets into one plan, which can simplify estate administration and ensure that your wishes are carried out exactly as you intend. Privacy: Unlike a will, which becomes public record through probate, a trust remains private. The details of your estate and how it's distributed are known only to your trustee and beneficiaries. What a Revocable Living Trust Does Not  Do While it offers many advantages, it’s important to understand the limitations  of a revocable living trust. Misunderstanding these can lead to costly mistakes. No Asset Protection: Because the trust is revocable  (you can change it at any time), creditors can still go after the assets inside. If you're sued, the trust provides no protection. It also does not shield assets from claims related to liability or bankruptcy. No Medicaid or Long-Term Care Protection: A revocable trust does not help when planning for Medicaid eligibility. Assets in the trust are still considered "countable" by Medicaid, which means they could disqualify you from receiving benefits for nursing home or assisted living care. No Tax Shelter: Revocable trusts do not provide any estate tax advantages. The IRS treats the assets as still belonging to you, so they remain subject to estate taxes if applicable. How to Protect What a Revocable Trust Can’t Thankfully, there are smart and accessible strategies to protect your wealth in the areas where a revocable trust falls short: For Asset Protection: Buy an Umbrella Liability Policy: An umbrella insurance policy adds an extra layer of liability protection on top of your existing homeowners, auto, or other insurance policies. For a relatively low cost, you can shield your assets from lawsuits and claims that exceed standard coverage limits. For Medicaid Planning: Purchase Long-Term Care Insurance: Long-term care insurance can help cover the cost of nursing home care, in-home care, and other services that Medicaid may eventually pay for—but without having to “spend down” your assets first. Work with an independent insurance agent, such as those at Whitaker-Myers Insurance Agency  , who can shop the marketplace and find a plan tailored to your health, finances, and goals. For Tax Efficiency: Combine with Other Strategies: While revocable trusts offer no tax shelter on their own, they can be used in conjunction with irrevocable trusts, charitable trusts, or gifting strategies to reduce your taxable estate. Conclusion: A Core Piece, Not the Whole Puzzle A revocable living trust is often a foundational piece of a well-crafted estate plan —especially if you want to avoid probate, maintain privacy, and provide continuity in the event of incapacity. But it’s not a magic wand. You’ll need additional tools to fully protect your wealth from lawsuits, long-term care costs, and taxes. At Whitaker-Myers Wealth Managers , we help clients think about and plan to work with their legal counsel to create a holistic estate and retirement plan that considers not just what happens after you're gone, but what could happen while you're still here .  With the right advisors around the table—your financial planner, estate attorney, and insurance professional—you can build a plan that provides security and peace of mind for every stage of life.

Health Savings Accounts (HSAs) are one of the most versatile and tax-advantaged tools available for managing healthcare costs and planning for retirement. Whether you're looking to save on medical expenses, lowering your current year income tax liability, or optimizing your long-term financial goals, understanding how to leverage an HSA is key. Below, we’ll outline the eligible HSA expenses and explore how strategic planning can use these expenses to boost retirement savings while potentially lowering taxable income. What Are Eligible HSA Expenses? The IRS allows HSA funds to be used tax-free for qualified medical expenses. According to the IRS website they define HSA expenses as: "Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. These are explained in Pub. 502, Medical and Dental Expenses . Amounts paid after 2019 for over-the-counter medicine (whether or not prescribed) and menstrual care products are considered medical care and are considered a covered expense. These expenses must primarily alleviate or prevent a physical or mental disability or illness. Here’s a breakdown of some common eligible expenses: Medical Services and Treatments Prescription Medications Dental and Vision Care Therapies and Mental Health Preventative Care Long-Term Care and Supportive Devices Alternative Treatments  (if prescribed) Let's look at some specific examples from Publication 502 of the IRS code. Acne laser treatment Acupuncture Ambulance fees and emergency care Artificial limbs Birth control pills, injections, and devices, such as IUDs Blood pressure monitors Body scans Breast pumps and lactation supplies Breast reconstruction surgery following cancer Canes and walkers Childbirth expenses, such as care from a midwife or obstetrician Childbirth classes for the expectant mother Chiropractic care Contact lenses and saline solution Crutches Dental care, including cleanings, sealants, fluoride treatments, X-rays, fillings, braces, extractions, and dentures Diabetes supplies, such as blood sugar test kits and insulin Diabetes education, including nutrition counseling Eye exams Eye surgery, including laser surgery Eyeglasses, including prescription and reading glasses, and prescription sunglasses Blue-light-blocking glasses First-aid kits Flu shots Guide dogs to assist with disabilities Food, grooming, and veterinary care for guide dogs Hearing aids and batteries Hospital expenses for both inpatient and outpatient services Infertility treatment, including in vitro fertilization; egg, sperm, and embryo storage; fertility monitors; and sperm washing Egg donor expenses related to infertility treatment Inpatient drug and alcohol treatment Insulin Lab fees Long-term-care premiums, up to a qualifying amount based on your age Medical alert bracelets Medical records fees Medicare premiums if you're 65 or older, excluding Medicare supplemental policies Night guards to treat teeth grinding Nursing care, whether provided in your home or a nursing home Occupational therapy Oxygen and oxygen equipment Physical exams Physical therapy Prescription medications Psychiatrist care Psychologist care Smoking-cessation programs and drugs, including nicotine patches and gums Speech therapy Surgery, excluding elective cosmetic surgery Thermometers Tubal ligation (female sterilization) and tubal ligation reversal Ultrasounds Vaccines Vasectomy (male sterilization) and vasectomy reversal Wheelchairs X-rays Additionally, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) changed to allow HSAs to be used for over-the-counter medicine (whether or not prescribed) and menstrual care products, provided they are paid after 2019. Finally, suppose you have a medical diagnosis where a doctor confirms a product or service is necessary to treat that medical condition. In that case, there is a whole list of items that could qualify as an eligible HSA expense. Please talk to your Financial Advisor if you think this situation pertains to you. It’s important to keep detailed records of expenses to ensure compliance and facilitate future strategic use, which we’ll discuss shortly. HSA Strategy: Using Prior-Year Expenses to Boost Retirement Contributions One of the lesser-known benefits of an HSA is the ability to reimburse yourself for qualified medical expenses incurred in prior years, provided those expenses were incurred after the HSA was established and you kept proper records. This feature opens the door for strategic tax planning. The Scenario Let’s say Emily has been diligently contributing to her HSA for several years and paying out of pocket medical expenses, allowing her HSA balance at Fidelity to grow tax-free while being invested in the four Dave Ramsey categories . Over the years, she’s accumulated $10,000 in unreimbursed medical expenses. In 2025, Emily decides to reimburse herself from her HSA for these past expenses. She withdraws $10,000 tax-free from her HSA and uses the funds to make a $7,000 contribution to her IRA (the maximum allowed for her age and income) and the remaining $3,000 for her 401(k) at work. By doing this: She reduces her taxable income in 2025 by $10,000, thanks to her IRA and 401(k) contributions. Her retirement accounts grow tax-deferred (or tax-free, in the case of a Roth IRA). This strategy not only lowers her immediate tax liability but also bolsters her retirement savings using pre-tax dollars. Incorporating Dave Ramsey’s Principles Dave Ramsey emphasizes the importance of intentional financial planning, particularly in avoiding debt and building wealth through consistent savings. HSAs align well with his principles: Budget for Healthcare Costs : Just as Ramsey encourages families to budget for monthly expenses, planning for healthcare costs ensures that HSA funds are used effectively without dipping into debt. Debt-Free Living : By paying for medical expenses out of pocket when possible, you avoid depleting your HSA, allowing it to grow as a debt-free source of financial security. Baby Step 4: Invest 15% for Retirement : Using your HSA strategically, as Emily did, can help you meet Ramsey’s goal of consistently investing for retirement while enjoying immediate tax savings. Final Thoughts An HSA is more than just a tool for covering today’s medical expenses—it’s a powerful vehicle for long-term financial success. By understanding eligible expenses and leveraging the flexibility of reimbursement, you can align your HSA strategy with larger financial goals like retirement planning and tax efficiency. At Whitaker-Myers Wealth Managers , we help clients incorporate HSAs into a holistic financial plan , maximizing their benefits while staying true to principles like those of Dave Ramsey: living intentionally, saving consistently, and building a legacy of financial freedom. Ready to take control of your finances and make the most of your HSA?  Contact us at Whitaker-Myers Wealth Managers to develop a strategy tailored to your unique financial goals.

If you're an EntreLeadership Podcast enthusiast, you're aware that the show has seen various hosts over the years. Currently, Dave Ramsey is at the helm. Not too long ago, Ken Coleman was the host. During his time, Ken encouraged listeners to send him letters via snail mail. He received a large number of letters from listeners nationwide, possibly including yours. Yet, one particular letter deeply moved Ken. Ken recounts meeting a man named Tim Hilterman in the lobby of Ramsey Solutions some years back. While Ken mistakenly identified Tim's profession, since Tim wore firefighter gear to run a marathon for drug prevention rather than being a firefighter, Ken did share a portion of Tim's letter. This letter highlighted Tim's unique bravery, not in battling fires, but in saving a life from something that almost claimed his own early in his marriage: cancer. Below is an excerpt from Ken's reading of the letter. You can also listen to the episode by clicking on the link here and starting at minute 2:30. "I get that life is short. In 2007, after one year of marriage, I was diagnosed with invasive malignant melanoma. God chose to spare me, but I haven't looked at life the same. Jim Collins wrote in the forward to Halftime (A book by Bob Buford), "We only get one life, and the urgency of getting on with what we were meant to do increases every day." Two years ago, my wife and I got to know a cute 4-year-old who was on dialysis 12 hours a day because she had lost both kidneys to cancer at the tender age of 1. I had one of those, if not me, then who moments, and after some prayer, I decided to find out if I was a match to donate a kidney. In God's providence, I was, and now a part of me is giving Brielle a chance at a normal childhood. This is quite impressive. It's the second occasion that a Ramsey broadcast has acknowledged one of our team members. You might also recall when a client showed their trust in Financial Advisor Jake Buckwalter.

Introduction If you are a small business owner or self-employed, you may be looking for tax-advantaged ways to save for retirement above and beyond the contribution limits of IRAs. The maximum contribution limit in 2025 for a Traditional IRA and Roth IRA is $7,000 ($8,000 for individuals 50 and older). Complimenting your IRA with a SEP IRA or Solo 401(k) can be an excellent solution to saving more for retirement. This article will briefly explain each option and provide insight into the similarities and differences between a SEP IRA and Solo 401(k).   Overview of a SEP IRA A SEP IRA stands for Simplified Employee Pension Individual Retirement Account. This type of account allows employers to contribute to their personal and employee retirement accounts. A business of any size can establish a SEP IRA, even someone self-employed. A SEP IRA is easy to set up and maintain and allows additional tax-advantaged retirement savings beyond a Traditional or Roth IRA. There are specific eligibility requirements for individuals to participate in a SEP plan. The individual must be at least 21. They must have worked for the employer in at least 3 of the last 5 years and received at least $750 in compensation for 2023 and 2024.   Contributions to a SEP IRA are made by the employer. Employees cannot contribute to their own SEP IRA. The employer can contribute up to 25% of the business’s income into a SEP IRA up to the maximum of $70,000 in 2025. Unlike Traditional IRAs, Roth IRAs ,  and 401(k)s, SEP IRAs do not have catch-up contributions for individuals over 50. Employers with more than one employee must contribute the same amount to each employee equally. If the employer contributes 5% to their SEP IRA, they must also contribute 5% to each eligible employee's SEP IRAs.   SEP IRA contributions are tax deductible for the employer and provide tax-deferred growth for the employee. SEP IRAs also allow the employee to invest in a broader range of investments than some other employer-sponsored plans. You can withdraw money from the SEP IRA at any time. However, distributions before the age of 59 ½ may result in an additional 10% tax penalty unless you qualify for an exception to the tax. All distributions in a SEP IRA are taxed as regular income and count as income in the year the distribution was taken. Required Minimum Distributions (RMD)  also apply to SEP IRAs. The individual will be required to take an RMD each year when they reach age 73 (or 75 if born in 1960 or later). The IRS Rules of SEP IRAs prohibit participants from taking out loans, and assets in the SEP IRA may not be used as collateral.   A SEP IRA is relatively easy to set up and requires minimal effort to maintain. Setup and maintenance also come with minimal cost. There are three steps to setting up a SEP plan. There must be a written agreement providing benefits to eligible employees. The plan participants must be given information about the plan, and a SEP IRA must be set up for each eligible employee. Taking advantage of a financial professional’s services will make setting up a SEP IRA simple and correct.   Overview of a Solo 401(k) A Solo 401(k) is for self-employed individuals with no employees other than the business owner (and potentially a spouse). A Solo 401(k) is often called a Self-Employed 401(k), Individual 401(k), or One-Participant 401(k). A Solo 401(k) is very similar to a regular 401(k) with multiple employees in the plan, but the business owner in a Solo 401(k) acts as the employer and the employee. The business owner also is not subject to nondiscrimination testing because there are no other employees in the business. A Solo 401(k) allows a business owner to save more tax-deferred (or tax-free in a Roth Solo 401(k)) funds than they could in a Traditional IRA or Roth IRA.   Contribution limits in a Solo 401(k) are like those of a regular 401(k), but the business owner can also give a nonelective contribution as the employer. The total contribution limit in a Solo 401(k) for 2025 can be up to $70,000 for individuals under 50, $77,000 for individuals between 50 to 59 or over 64, and new for 2025 is the super catch-up contribution where individuals from 60 to 63 can have total contributions up to $81,250. Keep in mind that this is just the maximum allowed for total contributions. In 2025, a participant in a Solo 401(k) can make elective deferrals as the employee up to $23,500 under 50, a $7,500 catch-up contribution between 50 to 59 and over 64, and the super catch-up contribution of $11,250 for participants ages 60 to 63. The business owner can also make a nonelective contribution of up to 25% of compensation as defined in the plan.   For example, Jake, age 34, owns a consulting firm and is the only employee and the owner. Jake earns $200,000 in 2025 from his W-2 wages. He contributes $23,500 as an employee and wants to contribute 25% of his compensation as the employer, which would be $50,000. But he cannot do that because he would exceed the $70,000 2025 maximum (he would be over by $3,500), so his maximum contributions are capped at $70,000. Nick, age 35, on the other hand, also has a small business and made $100,000 in 2025. He contributes $23,500 as the employee and can also contribute up to 25% of his earnings as the employer ($25,000). So, the maximum that Nick can contribute to his Solo 401(k) for 2025 is $46,500. Although this is well under the maximum of $70,000, Nick has reached the maximum allowable contributions as the employee and employer.   Setting up a Solo 401(k) is a relatively simple process. You need a tax identification number like an Employer Identification Number or Social Security Number. Choosing a plan administrator is the next step. This is basically selecting a custodian to hold your assets and administer the plan. At Whitaker-Myers Wealth Managers , we can help you set up your Solo 401(k) with Fidelity or Charles Schwab and manage and direct the investments within the plan. Next, you need to sign a plan adoption agreement and any other paperwork the provider requires. Once the account is set up, you will decide how you would like to contribute and choose your investments. One more note about Solo 401(k) plans is if your balance is over $250,000, you might have to file tax form 5500-EZ with your tax return.   Conclusion A SEP IRA is generally easier to set up than a Solo 401(k). SEP IRAs are low maintenance and easy to manage. They are suitable for small business owners with variable income and little to no employees. Unlike a Solo 401(k), SEP IRAs do not have catch-up contributions available because the employer makes the contribution. A Solo 401(k) may require more effort to set up but allows individuals to potentially save more than they would be able to in a SEP IRA. The Solo 401(k) is ideal for small business owners with no employees (other than a spouse) looking to maximize contributions.   If you are looking to set up a SEP IRA or Solo 401(k), we suggest consulting with your financial advisor to determine which option is best for your particular situation.

Whitaker-Myers Wealth Managers is proud to announce that John-Mark Young has recently earned the prestigious Chartered Financial Consultant (ChFC®) designation from the American College of Financial Services . This significant achievement highlights John-Mark’s dedication to expanding his expertise and furthering his ability to serve clients with a wide range of financial planning needs. The ChFC® designation is one of the most comprehensive financial planning credentials in the industry. It requires completion of a rigorous curriculum that covers essential topics such as retirement planning, estate planning, insurance, taxation, investment strategies, and more. Earning this designation reflects John-Mark’s commitment to providing his clients with advanced, holistic financial solutions tailored to their individual goals. As a Financial Advisor with Whitaker-Myers Wealth Managers, John-Mark brings years of experience and a deep passion for helping individuals and families navigate the complexities of financial planning. In addition to his ChFC® designation, he holds several other notable certifications, including the Certified Kingdom Advisor (CKA®) designation, Retirement Management Advisor (RMA®) certification, the Retirement Income Certified Professional (RICP®), the Advanced Certificate in Blockchain and Digital Assets, and the National Social Security Advisor (NSSA®) certification. This diverse skill set uniquely positions him to assist clients in planning for their futures with confidence and clarity. “Obtaining the ChFC® designation is a milestone that underscores John-Mark’s unwavering dedication to continuous learning and excellence in financial planning,” said Timothy Hilterman , Chief Financial Planning Officer at Whitaker-Myers Wealth Managers. “His ability to combine technical expertise with a genuine passion for helping clients achieve their financial goals is what makes him an invaluable asset to our team.” Obtaining the ChFC® designation, with its emphasis on retirement planning, enables John-Mark to more effectively assist Dave Ramsey listeners who value a debt-free lifestyle and a secure retirement. By integrating retirement strategies with Ramsey's principles, John-Mark aids these clients in crafting personalized plans that foster long-term wealth while staying true to their core values. The ChFC® designation enhances Whitaker-Myers Wealth Managers' dedication to upholding exceptional professionalism and client service standards. Clients partnering with John-Mark can trust they are receiving guidance supported by the most current financial planning knowledge and best practices. John-Mark serves clients throughout Ohio, Florida and beyond, helping them build, preserve, and manage their wealth for generations to come. Congratulations to John-Mark Young on this outstanding accomplishment

The S&P 500, the key benchmark for the growth and growth and income portion of an investment portfolio, is comprised of eleven sectors, each with distinct economic drivers. The S&P 500’s allocation to each sector gives a glimpse into how different industries respond to economic change and the pressure applied by recent Federal Reserve interest rate decisions. In 2024, technology continued its heavyweight in the S&P 500 , exemplifying the growing dominance of technology companies in the U.S. economy. With the market year coming to a close recently, let’s take a closer look at the tech boom and its impact on the market.   Technology’s Influence Historically, the technology sector’s representation in the S&P 500 was minor. The heavy weightings used to belong to sectors like energy, consumer staples, and financials. With the rapid rise of technological advancements in the late 20th and early 21st centuries, tech began to dominate. In the 1990s, the tech sector established a strong footing, especially companies like Microsoft, Intel, and Cisco. The dot-com bubble of the late 90s drew attention to the long-term potential of tech companies to reshape the economy entirely. That reshaping has only continued in recent years as technology dominates our economy, culture, and stock market.   The dominance of the technology sector was on full display yet again in 2024, as technology carried around 32% of the S&P 500’s weight as of the end of December. Despite some of the concerns surrounding the Federal Reserve interest rate movement, technology stayed the course with a continued demand for artificial intelligence (AI), semiconductors, and cloud computing. Companies like NVIDIA, Alphabet, and Microsoft benefited from the growing interest and enthusiasm around generative AI and its seemingly limitless potential. This led to a significant portion of the S&P 500’s performance in addition to supply chain improvements. Semiconductors, cloud services, and data analysis demand have shot up with the increasing integration into consumer products like smart home devices and self-driving cars, and technology will likely remain the preeminent force in the markets.   Impact and Imbalance  The imbalance of the S&P 500, favoring technology stocks, has continued to impact overall index performance. The entire index seems to live and die by the performance of tech companies. This disproportionate influence on the market can be problematic at times, leading to volatility in periods of economic uncertainty, highlighting the importance of market diversification. This lack of balance can also distort the market as a whole. While the performance of the S&P 500 used to represent the health of the overall U.S. economy, that may no longer be the case, as many S&P 500 ETFs and Mutual Funds   carry similar tech-heavy weightings, lacking the traditional diversification that comes with holding large baskets of stocks. This overweighting could create ripple effects felt for years if regulatory pressures on tech companies impact future growth potential. Conversely, the increased demand for AI and quantum computing could drive future growth and create more tech giants.   As technology continues to evolve, it’ll be important to keep an eye on the impact that it has on the S&P 500. As an investor, it is important to weigh the pros and cons of such concentration risk in your own portfolio and make a decision that is right for you and your risk tolerance. If you have questions about diversification and risk concentration, contact one of our advisors and schedule a time to discuss your situation. At Whitaker-Myers Wealth Managers , we have a team of advisors with the heart of a teacher available to help answer your questions about investing.

If you listen to The Dave Ramsey Show  for just one episode, it will become very apparent that he is very passionate about relaying the importance of having an estate plan.  An estate plan  is when a person or couple creates a plan for what they want to happen to their estate when they die.  There are many different ways to plan for death, but Dave Ramsey and his team at Ramsey Solutions preferred the method of being a Will.    What happens if you don’t have a Will? So what happens when a person does not take the time to create their own estate plan? When this occurs, it’s called dying “Intestate.”  The good news is that the government has made an estate plan for you.  In this process, a judge will appoint an administrator who will work as a fiduciary in carrying out the court orders.  Unfortunately, in this situation, if a husband dies and leaves his wife behind with kids (or vice versa), a portion of his estate will be allocated to his wife and another portion will be left to his children.  This could result in a wife partially owning the house with her children.  As a prior Ramsey personality would say, “If we can’t trust the government to take care of the potholes in the roads, then why would we trust the government to take proper care of our estate.”   5 common types of Wills There is also more than one type of Will; we will share a high-level overview of each kind below:   Holographic Will This is a handwritten note that states what a person wants done with their estate upon their death.  When a person makes a holographic will, it must be signed and dated by the testator (the person who has passed).    Nuncupative Wills When a testator orally states how they want their estate to be distributed upon death.  This needs to be completed with sufficient witnesses however, it is not accepted in all states.    Statutory Wills This is when a person uses a licensed attorney to complete the will documents according to the laws of the state where the testator lives.    Mutual/Reciprocal Wills When a licensed attorney creates two identical wills for a couple.    Joint Will When two people use a licensed attorney to create the will where, at the death of the first person, the survivor is contractually bound by the will.      Benefits and Drawbacks The benefits of a will are that it gets what you want to happen on paper and leaves direction for your loved ones upon death.  One drawback to wills is Probate.   This is the legal process of distributing the assets according to the testator’s wishes.  This also means the testator’s will is a public document, and if an individual wants to know the will's wishes, they have access to it through the court.    Because the will is already going through court, it makes the process easier to contest.  If a loved one feels they should have had a more considerable death benefit, they can say why they think their loved one was manipulated into providing someone else with their portion.    However, the judge has the final say in what happens to the will.  If the judge thinks there are too many restrictions, it is too complicated, or the testator is manipulated, they can invalidate the will or award and proceed according to how they deem fair.     Estate planning is a complicated process, and creating a will is one small option to prepare your estate properly when you or a loved one passes away.  At Whitaker-Myers Wealth Managers , we are partnered with Encore Estate Planning to help you develop a detailed plan for your assets.    If you would like to talk about setting up a will or have questions about the starting process, contact your financial advisor to start this discussion.   Whitaker-Myers Wealth Managers is not a law firm and does not provide legal advice.

Looking toward the future We are in the first innings of what will be the greatest transfer of wealth in US history. It is estimated that over the next 20 years, more than 84 TRILLION will pass from baby boomers to their heirs. To put that number in perspective, the total value of the ENTIRE US stock market is roughly 55 Trillion. I believe the next 20 years will be transformative for the US for several reasons, such as the rise of AI increasing productivity, the changing demographic landscape of the US, and the massive transfer of wealth from generation to generation.   Pension Plans to 401(k) A couple of causes of this wealth transfer are set to occur. First was the advent of the 401(k ) , which occurred in 1978. The 401(k) is now the most widely used vehicle for retirement savings, but it was new in 1978 and has slowly but surely taken the place of traditional pension plans. This transition put the burden of saving on the employee instead of the employer. Strong stock market returns in the 80s also helped to get the new 401(k) participants off to a good start. In real estate, home ownership was more prevalent at earlier ages in the 80s and 90s, and the average home price has gone up by just under 4% since 1987.   Retirement to Inheritance With all that being said, the majority of the credit needs to be given to the generation that has the discipline to save for their working career and to live below their means during their working careers and also in retirement . This is now leading to a huge transfer that will have ripple effects in the US. The numbers are astounding when you break them down. It is hard to comprehend what 84 trillion dollars is. Eighty-four trillion divided by 330 million, roughly the US population is—$254,000 per person.   Obviously, not everyone will inherit money; many individuals will inherit nothing or very little, and then you can’t include the population that will be passing on the inheritance. I guess that a small, not very small but small number of individuals or families will inherit very large amounts of money. I believe the ripple effects of this will cause a widening of the wealth gap that we already see in America. I think that the cost of experiences will outpace inflation; goods inflation should not be affected as much by this. With advances in AI and a low birth rate, not counting for a huge and continued influx of immigrants, I do not believe the US population will continue to rise.   The Plan Ahead The takeaway would be that anyone expecting an inheritance should be open to talking to a financial advisor or planner. The opportunity of an inheritance can be a game-changer for those previously priced out of the housing market or unable to save for retirement. However, it also needs to be factored into a financial plan to help them lay out their future. There are also ways to plan the inheritance to maximize tax efficiency. By talking to a team member of the Whitaker-Myers Wealth Managers Team , they can help you plan, strategize, and help you set goals for your financial future.